Q) Pick any services as an example to demonstrate how retailers perform functions

to
increase the value of the services.
Ans) I have chosen the service offered by Lakme beauty salon.
Lakme Beauty Salons offer a full range of the latest beauty
and grooming services in the areas of hair care, skin care
and beauty. The services include specialized services for
skin (facials), hair (coloring, cuts, styles, perms etc), hands
& feet (advanced manicures and pedicures) as well as
essential beauty services (waxing, pedicures, and
manicures).
Half a century ago, as India took her steps into freedom,
Lakme, India's first beauty brand was born. At a time when
the beauty industry in India was at a nascent stage, Lakme
tapped into what would grow to be amongst the leading,
high consumer interest segments in the Indian Industry -
that of skincare and cosmetic products. Lakme has since grown to be the market leader in
the
cosmetics industry. There have been a number of reasons that has made Lakme grow
both in
cosmetic arena and service arena. The following addition of value in their services has
lead to the
growth of this nascent brand:-
•
Firstly, the salon offers a wide variety of services (hair care, skincare, bridal, etc.) that are
designed keeping India beauty trends and need in mind.
•
The salon is equipped with latest beauty
equipments and highly trained personnel who take
personal care of the customers, ensuring proper
comfort and convenience.
•
The sophisticated designer ambience of the salon also provides its customers with a
pleasant experience and they thoroughly enjoy their services.
•
The management ensures complete hygiene in the salon ranging from the operating area
to the personnel attending the customers.
•
The salon has 88 outlets all over India which again makes it easily accessible by its target
consumers.
•
The management also seeks feedback from its customers to ensure complete satisfaction
and ways to improve their experience.
•
The salon has also launched unique programmers such as peppermint services, free spirit
services, happy hour services which are designed to meet the need of various consumers
to either rejuvenate them or relive their stress.
•
Lastly, the services offered by the salon are at affordable prices that again suit the budget
of the middle class society, which occupies the maximum percentage in India.
Thus, these unique features offered by the salon have helped it position itself in the
market and has also helped the parent brand enhance its image. With newer innovations
the company might excel further and achieve bigger profits in the future.

What's new

Lakme beauty presents range of services inspired by free spirit collection.

PEPPERMINT SERVICES
Lakme Beauty Salon has launched three refreshing beauty services to help you beat the
summer heat. The new range of facials, manicures and pedicures come with a minty
surprise. A part of the Peppermint range, these services cool with unique mint based
ingredients giving your skin a much-needed break from the harsh summer.
Summer Mint Fresh Facial
Cool and hydrate your skin with detoxifying effect of basil, cucumber, khus and mint. And
walk out fresh, glowing and de-tanned.

Summer Mint Sparkle Manicure

This unique manicure with therapeutic blend of basil, grapefruit and mint rejuvenates tired
hards, softens the skin and helps prevent blemishes.

Summer Mint Sparkle Pedicure

Stimulate and rejuvenate your feet with the goodness of lemongrass, teatree and spearmint,
for beautiful, delicate and unblemished feet, this is the one to chose. There is nothing like a
little peppermint on a hot summer day.

FREESPIRIT SERVICES
Lakme beauty salon presents a range of services inspired by the Freespirit collection - Floral
Bliss Facials, Floral Exfoliation and Orchid Hand & Foot Facials.

Freespirit Floral Bliss Facial

A unique facial for normal to dry skin where the client is treated to a luxurious session of
floral fantasy on the face, scalp, back, hands and feet.
This facial combines the massage with Rose Exotica Cream and application of Floral
Moulding Mask for dry skin. As the Rose Exotica penetrates deep into the skin for
nourishment, the moulding mask gives the needed lift. Pneumopatter treatment is given on
the acupressure points of face and neck for alternating suction and relaxation of tissues. It
not only relaxes tense muscles but enhances the skin tone as blood circulation and metabolic
activity within the tissues improves. Detoxification and removal of waste occurs as lymph is
drained towards lymph nodes.
Price range Rs.1800 - Rs.2000.

Freespirit Floral Exfoliation

 A balancing facial for normal to oily skin where client is treated to a luxurious session of
floral fantasy on the face, scalp, back, hands and feet.
This facial combines the massage with Jasmine Grandeur Cream and application of Floral
Moulding Mask for oily skin. As the Jasmine Grandeur Cream penetrates deep into the skin
for deep cleansing and balancing, the moulding mask gives the needed lift. Pneumopatter
treatment is given on the acupressure points of face and neck for alternating suction and
relaxation of tissues. It not only relaxes tense muscles but enhances the skin tone as blood
circulation and metabolic activity within the tissues improves. Detoxification and removal
of waste occurs as lymph is drained towards lymph nodes.
Price range Rs.1800 - Rs.2000.

Freespirit Orchid Hand & Foot Facial

Freespirit Hand and Foot Facials are designed using products made of floral extractions
which give essential oils to the hands and feet leaving them relaxed and rejuvenated.
Price range Rs.275 - Rs.400.

Hairnext Services - transform your hair and the way you look

Pamper, rejuvenate and style your hair to transform you - with six indulgences

Vital Indulgence:
Invigorates your hair, activating cell regeneration and blood circulation of the scalp. It
revitalizes hair roots with nutrients and protects against hair loss. Extra moisture revives
and strengthens lank hair to give you luscious, voluminous tresses.

Hydra Indulgence:

Uses Aloe Vera extracts to balance moisture content in dry hair. Ingredients penetrate into
the cortex of your hair, giving it new-found elasticity and bounce. It enhances hair
structure for easier manageability and even naturally curly or permed hair comes alive with
this indulgence

Silken Indulgence:

Regenerates hair structure making it like smooth, glossy yarns of silk. Gifting your hair
elasticity and inner strength and effectively balancing moisture content, this indulgence
makes your tresses so manageable that wearing them is a whole new experience.

Renew Indulgence:

Ideal for chemically treated hair. Pure honey extracts strengthen hair structure, making it
glossy and easy to manage.

Pure Indulgence:

An Indulgence that frees your hair from its greatest curse – dandruff. It removes persistent
dandruff and prevents it too. While Alantoin and Panthenol calm down irritable scalp
without weighing down hair Menthol treats itching and completely purifies your hair.

Refresh Indulgence:
 Gifted with the rejuvenating properties of honey, this indulgence works to bring life back
into colored hair. Honeys works its miracles to strengthen hair and give you a lustrous
luscious mane that is easy to manage.

HOW LAKME IS INFLUENCING ITS CONSUMERS:

THE CONCEPT OF EGO:
‡According to Freudian Psychoanalytic theory Lakme tries to position itself on the
basis of its appeal to the consumers which have an ego. This means that the consumers of
Lakme have an impulsive drive for which they seek immediate satisfaction without
concern for means of satisfaction3.
‡Women all over the world are always expected to look good and Indian women are
no exception; More so because of the fact that Indian women in general do not
have a fair skin like that of their western counterparts. Thus it becomes but natural
for Indian women to try and look good and use beauty products that help enhance
their looks and style. With globalization and liberalization of Indian economy and
the changing demographics and income levels there is more and more concern to
look good as today's Indian woman is no longer confined to her home but is a big
contributor to the growth of Indian economy.
THE CONCEPT OF PERSONALITY GROUPS:
‡
Lakme tries to woo the compliant consumers according to Karen Horney's
classification4 of personality groups i.e. people who move towards others. Those
who have desire to be loved, wanted and appreciated. As is earlier stated women
are supposed to look good not only in western countries but also in India.
‡Women always appreciate if someone calls them beautiful and it has become the
custom of the society to see women in such a context. So it would be prudent to
say that according to the societal norms a women has to look good at all times and
which has a bearing on the psychology of female consumers towards cosmetic
products which help them achieve that desired look. Needless to say that Lakme
plays on the concept of women wanting themselves to be appreciated for their
beauty and being loved for that.
Q) Pick any fashion product. Show how a company retailing this product has
managed to be successful by taking recognition of the changes in retailing. Provide at
least 3 specific instances of how the company has adjusted to changes in retailing to
become a success.
Ans)R etailing - no marks for guessing this is the most active and attractive sector of the
last decade. While the retailing industry itself has been present through history in our
country, it is only the recent past that has witnessed so much dynamism.
The emergence of retailing in India has more to do with the increasing purchasing power
of buyers, especially post- liberalization, increase in product variety, and the increasing
economies of scale, with the aid of modern supply and distribution management
solutions.
The current retailing revolution has been provided an impetus from multiple sources.
These`revolutionaries' include many conventional stores upgrading themselves to modern
retailing, companies in competitive environments entering the market directly to ensure
exclusive visibility for their products and professional chain stores coming up to meet the
need of the manufacturers who do not fall into either of the above categories.
Attractiveness, accessibility and affordability seem to be the key offerings of the retailing
chain.
The fashion product chosen by me is Cosmetics manufactured byLakm e (A
Brand of Hindustan Unilever Ltd.).
Half a century ago, as India took her steps into freedom, Lakme,India's
first beauty brand was born. At a time when the beauty industry in India
was at a nascent stage, Lakme tapped into what would grow to be amongst the leading,
high consumer interest segments in the Indian Industry - that of skincare and cosmetic
products. Armed with a potent combination of foresight, research and constant
innovation, Lakme has grown to be the
market leader in the cosmetics industry. Lakme today has grown to
have a wide variety of products and services that cover all facets of beauty care, and arm
the consumer with products to pamper her from head to toe. These include products for
the lips, nails, eyes, face and skin, and services like the Lakme Beauty Salons.
In 1995, Lakmé Ltd (a Tata Group company) and HLL formed a 50:50 venture Lakmé
Lever that would market and distribute Lakmé’s products. In 1998, Lakmé sold its brands
(and the 50 per cent it owned in the JV) to HLL, renamed itself Trent and entered a
different business (retail). Only, the years between 1995 and 2000 saw HLL wrestling
with several issues with a bearing on Lakmé’s future. A brand that has over 5 decades
talked of beauty is
none other than Lakmé. Launched in 1952, it offered a range of cosmetics
with nail polishes & lipsticks from the early 80’s. Lakmé also understands the importance
of maintaining and accentuating a women’s natural beauty, for this it has introduced a
range of skincare products from 1987. These ranges have been constantly innovated to
bring specialized beauty care and complete the range for the definitive women. With a
unique blend of understanding of women of all ages, today, Lakmé is all about setting
trends and dominating the fashion arena.
With changing retail scenario Lakme has constantly innovated and modified its products
and marketing techniques to retain its position in the competitive market.
The 3 basic instances which have transformed the image of the company
and have repositioned the company are discussed as follows –
1.Firstly, Lakme Launched Elle 18 in 1998, that targeted the first-time
cosmetic user and currently sports two product lines comprising lipsticks and nail
enamel. This brand extension targeted youth, sporty youngsters who want to be trendy at
affordable prices.
“In the first three years, Elle 18 registered sharp growth rates and the purpose was to
create a new segment of consumers,” said Mr. Chopra. There was a conscious price
differential between the brands to attract the first generation users of cosmetics. So, while
a Lakme Lipstick would have an
MRP of Rs 165, an Elle 18 Lipstick was pegged at Rs 55. The brand extension was
successful and helped the company enter into new market segment and penetrate in the
market.
2.Secondly, The Company started Sponsoring
fashion shows and introducedLakme
Fashion Week with an aim to integrate India
into the global fashion world. This gave a good base to help company promote its
products and enhance its brand image. Because of increased competition and constant
need for innovation, The Company has to develop newer methods and ways to reposition
its products and enter different
market segments. Lakme fashion week being a success helped company attain new
heights and improve its image in the minds of its customers.
3.Thirdly, The Company recently inaugurated its new salon named as
‘Lakme Beauty Salon’ to extend its service line and enter new
market. As people want efficient services at affordable prices, along with good
experiences, trendy ambience and well –trained staff, it became easy for the company to
enter into this service sector to expand its business all across the country.

Thus, these innovative ideas and

marketing efforts have helped the company respond successfully to the changes in retail
trends and have helped company grow by entering into various marketing segments.The
company realized the importance of
customer needs and changing behavioral patterns and has made optimum use of the
opportunity to maximize profits and acquire a distinct image in the minds of its
customers.